Back to top

Image: Bigstock

Drug, Biotech Stocks' Q2 Earnings on Jul 27: BMY, GSK & More

Read MoreHide Full Article

The second-quarter 2022 reporting cycle of the Medical sector is currently in full swing. The sector mainly comprises pharma/biotech and medical device companies.

While a few big pharma companies have reported, a major chunk of drug and biotech companies are slated to release results in the coming two weeks. The earnings picture looks reasonably well so far.  Bellwether Johnson & Johnson beat estimates for both earnings and sales in the second quarter but the outlook was lowered.  Biogen (BIIB - Free Report) beat on sales and earnings in the second quarter and the company upped its financial guidance.  Novartis reported mixed results as earnings beat estimates but sales missed the mark.

The Earnings Trends report indicates that as of Jul 20, 8.9% of the companies in the Medical sector — representing 29% of the sector’s market capitalization — reported quarterly earnings. Earnings and revenues increased 10.4% and 11.2% year over year, respectively. Overall, second-quarter earnings and sales of the Medical sector are expected to rise 1.5% and 8.1%, respectively, from the year-ago quarter’s reported figures.

Bristol Myers Squibb (BMY - Free Report) , GSK plc (GSK - Free Report) , Teva Pharmaceutical Industries Limited (TEVA - Free Report) and Alkermes (ALKS - Free Report) are scheduled to release second-quarter earnings on Jul 27.

Let’s analyze the performance of the above-mentioned biotech/pharma companies.

Bristol Myers Squibb

Bristol Myers Squibb, which has an impressive earnings track record so far, is scheduled to report quarterly results before the market opens.  The company beat earnings estimates in all of the last four quarters, the average surprise being 2.36%. In the last reported quarter, it beat earnings by 2.08%.

Eliquis and immuno-oncology drug Opdivo are likely to have driven growth in the second quarter. New drugs are likely to have fueled growth as well.

Per our proven model, stocks with the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) have a good chance of delivering an earnings beat. This does not seem to be the case with Bristol Myers for the to-be-reported quarter. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Bristol Myers has an Earnings ESP of -2.10% and currently carries a Zacks Rank #3.

GSK

GSK will report second-quarter results before market open. Its earnings surpassed estimates in each of the trailing four quarters, delivering a beat of 24.09% on average.

Higher sales from newer respiratory and HIV drugs are likely to have been offset by a decline in sales of older HIV drugs and Established Pharmaceuticals segment sales.

GSK has an Earnings ESP of -4.32% and a Zacks Rank #5 (Strong Sell). 

GSK plc Price and EPS Surprise GSK plc Price and EPS Surprise

GSK plc price-eps-surprise | GSK plc Quote

Alkermes

Alkermes’ earnings surprise history has been excellent so far, having surpassed expectations in each of the trailing four quarters, with an average beat of 350.48%. In the last reported quarter, Alkermes delivered an earnings surprise of 1,100%.

Vivitrol (for alcohol and opioid dependence), Aristada (for schizophrenia) and Vumerity and newly approved drug Lybalvi are likely to have maintained momentum for the company.

Alkermes has an Earnings ESP of +300.00% and a Zacks Rank #1, indicating an earnings surprise.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Alkermes plc Price and EPS Surprise Alkermes plc Price and EPS Surprise

Alkermes plc price-eps-surprise | Alkermes plc Quote

Teva

Teva will report results before market open. Teva’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average being a negative 0.42%,

Teva has an Earnings ESP of +0.71% and a Zacks Rank #3. 

Continued rise of Austedo prescriptions and market share growth for Ajovy might have boosted its performance. Cost-saving initiatives undertaken by the company are likely to have aided the bottom line.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.